Indexing, exchange rate policy and effects of inflationary feedback in Latin America

This paper examines inflationary adjustment processes in Argentina, Brazil,Chile, Ecuador, Peru, and Uruguay with time-varying estimation techniques to determine therelationship between inflationary inertia or feedback effects from past to current inflationand the degree of indexation of wages and e...

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Detalles Bibliográficos
Autor: McNelis, Paul D.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1986
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:portugués
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1822
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1822
Access Level:acceso abierto
Palabra clave:Cambio
inflação
inércia
estabilização
política salarial
Exchange rate
inflation
stabilization
wage policy
Descripción
Sumario:This paper examines inflationary adjustment processes in Argentina, Brazil,Chile, Ecuador, Peru, and Uruguay with time-varying estimation techniques to determine therelationship between inflationary inertia or feedback effects from past to current inflationand the degree of indexation of wages and exchange rates to past inflation rates. The resultsshow that reductions in the degree of exchange rate linkage to past inflation have not beenparticularly helpful in larger or relatively more diversified economies (such as Argentina,Brazil, or Chile), while reductions in wage linkages to past inflation rates have had strongbut short-lived effects. JEL Classification: F31; E31; J38.